- Philadelphia lies in the Oatman district
- Oatman has produced over 2 million ounces of gold
- Arizona is mining-friendly
- Experienced management
What Arizona Silver Exploration does:
Arizona Silver Exploration (CVE:AZS) (OTCMKTS:AZASF) is on the hunt for high-grade gold and silver in the 'mining friendly' US state of the same name.
The Vancouver-headquartered company owns 100% of the previously producing Philadelphia property in Mohave county, Arizona, which was discovered in the late 1800s and operated intermittently, mainly between 1917 and 1935 as a 50-tonne-per-day (tpd) underground mine.
Past production ranged from 10 to 27 grams per tonne (g/t) gold with historic silver grades in the production shaft averaging 420 g/t silver.
The firm also boasts the Ramsey asset, which lies two hours west of the city of Phoenix, and saw historic high-grade production of 1,370 g/t of silver. It has 41 existing 1960s underground drill holes. Notably, the silver mineralization is open-pittable at depths hit so far.
It also owns the Sycamore Canyon project, where 31 g/t gold and 553 g/t silver have been encountered at surface.
Here, the company has staked an additional 27 unpatented claims surrounding the core group of leased claims, to protect possible extensions of the silicified breccia, both to the northwest and the southeast, and to cover any additional veins identified.
How is it doing:
The Philadelphia project has been the recent operational focus and on September 2, Arizona Silver revealed the firm was 'back on track' there after the first drill hole of 2020 returned high-grade gold and silver.
Keeping things brief, this announcement came after previous drill assays at the property had thrown up results, which had not reflected the group's expectations, namely non-comparable gold and silver values to previous work and very low beryllium values. So the company started more drilling.
"The newest drill results confirm our suspicions that we had lost the primary vein target and were drilling a second but lower grade vein in our previous attempt to chase the primary vein along strike and down dip under alluvial cover," explained Greg Hahn, Arizona Silver's vice-president of exploration, in the latest statement.
"The results of the current drilling put us back on target to chase the primary vein with a steeper dip than previously anticipated," he added.
Results from the latest hole included 23.35 g/t gold, 82.3 g/t silver and 340 parts per million (ppm) Beryllium over 1.5 metres, within a thicker interval of 18.45 metres containing 3.81 g/t gold and 49.21 g/t silver and 113 ppm Beryllium.
Meanwhile, at the Ramsey project, also in Arizona, the group in mid-August reported that core drilling had been suspended due to excessive fragmented rock, and said it has decided to return with a reverse circulation (RC) rig, which has demonstrated better efficiency, while getting good recovery and much better productivity.
Returning with a RC rig will save costs and will more efficiently drill this target, the mining firm told investors.
The company also boosted its portfolio in August, revealing it would lease new ground near a historic mine in Nevada known as the Silverton property, which lies 100 kilometres (km) northeast of Tonopah and comprises 77 claims on 1,540 acres.
Under the terms, Arizona Silver is leasing Silverton in exchange for US$70,000 in staged payments up until October 2022 (US$10,000 of which was already paid in October 2019) and $25,000 annually thereafter. The agreement also gives Arizona Silver the option to purchase the property outright for US$1.25 million with a retained 2% net sales royalty (NSR) to the underlying owner of the claims and a retained 1% NSR to the assignor of the lease.
- More exploration at Philadelphia project
- Ramsey project drilling
- Developments at the Silverton property
What the boss says:
Commenting on the Philadelphia project in the September 2 release, Greg Hahn, Arizona Silver's vice-president of exploration said: "The primary vein target remains wide open along strike and down dip. Significantly, we now know that the vein crosses lithology and is not floored by granite everywhere.
"We have now encountered granite in the hanging wall of the vein, where previously granite was interpreted to be always footwall to the vein. This knowledge opens up the extensions to the vein in all directions, especially where we terminated shallow holes in granite, thinking we were below the vein."